1) From the technical rule sheet:
http://www.oneworld.com/content/libr...rule_sheet.pdf
Surface travel and use of other carriers between intermediate points along the circle
which are not operated by AA/BA/CX/JC/JL/JO/KA/ LA/LP/MX/NU/QF/XL/4M is
permitted at the passenger's expense and must be ticketed separately. Mileage must be
included in the MPM calculation.
2) It's the distance travelled (including surface sectors). Class of service is irrelevant to the calculation.